China’s AI-content boom faces questions over oversupply and its real compute footprint

A recent analysis argues that AI-generated content is fueling oversupply and cultural anxiety, but its claim that 55% of China’s tokens go to AI video is contested. China Merchants Securities points to projected growth in short dramas and webtoons and emerging monetization and settlement models, but forecasts and cost claims need validation; generation costs and incomplete data make the true compute share uncertain. Labor displacement, retraining, and social protection remain important to track.